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vvoelkel1
New Member

We have a single mortgage that covers our personal home and our rental/guest house. How do I calculate depreciation on the rental house?

 
1 Reply
Leonard
Intuit Alumni

We have a single mortgage that covers our personal home and our rental/guest house. How do I calculate depreciation on the rental house?

Depreciation is based on the value of the property not on the properties mortgage.  The basis for depreciation on your rental house will be the lower of its Fair Market Value (FMV) or its cost basis at the time the property was put into service as a rental. Rental residential properties are depreciated over  27.5 years.

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